Joint Stock Company "Latvijas Gāze" statement of change of ownership of Joint Stock Company "Gaso" and loss of qualifying holding
On July 17, 2023, under the agreement signed in April 2023, the final preconditions for the completion of the transaction of sale of the 100% subsidiary JSC “Gaso” were met, and the change of ownership has been registered with the Commercial Register of the Republic of Latvia, with AS “Eesti Gaas” becoming holder of 100% of shares in the JSC “Gaso”.
The JSC “Gaso” is the only natural gas distribution operator in Latvia. The JSC “Gaso” operates independently of the JSC “Latvijas Gāze” and the change of ownership will not affect the provision of the companies’ services to the customers of the JSC “Latvijas Gāze”.
In the balance sheet contained by the Q1 2023 financial statement of the JSC “Latvijas Gāze”, the contribution to the JSC “Gaso” was included under current assets in the amount of 122 million EUR, while the equity of the JSC “Latvijas Gāze” as at March 31, 2023 amounted to 319 million EUR. Upon completion of the transaction, the JSC “Latvijas Gāze” has received a payment that corresponds to the book value of the contribution.
The JSC “Gaso” financial results of last three years (thousand EUR):
| 2022 | 2021 | 2020 | |
| Turnover | 51 180 | 57 914 | 49 090 |
| Net profit/ (losses) | (1 751) | (11 545) | 8 466 |
| Dividends paid | - | 8 379 | 8 778 |
The JSC “Latvijas Gāze” confirms that there are no current material contracts between it and the JSC “Gaso” and there are no court or arbitration proceedings that might substantially affect the commercial activity of this capital company.
We are delighted that it was possible to complete the transaction within a few months from signing the agreement, and this further proves that AS “Eesti Gaas” is an appropriate partner for the JSC “Gaso”.
KPMG Baltics LLC un KPMG Law ZAB LLC provided support to the JSC “Latvijas Gāze” in the process of selling its subsidiary JSC “Gaso” to the Estonian company “Eesti Gaas”. KPMG Baltics LLC un KPMG Law ZAB LLC helped shape the deal structure, assisted the JSC “Latvijas Gāze” in the negotiation process, and conducted the legal procedures necessary for the deal.
The timely completion of the transaction enables the JSC “Latvijas Gāze” to responsibly prepare for the new 2023/2024 heating season and to decide on returning capital to shareholders at the Shareholders’ meeting scheduled for July 27, 2023.
JSC “Latvijas Gāze”
Board
About JSC “Latvijas Gāze”
Founded in 1991, the JSC “Latvijas Gāze” is one of the leaders of the Baltic energy sector and provides the wholesale and sale of natural gas to business customers in Latvia, Estonia, Lithuania and Finland. In the household segment, the JSC “Latvijas Gāze” is the largest and most prominent natural gas trader in Latvia. The company’s shares have been listed on the NASDAQ Riga stock exchange since February 15, 1999 – a proof of high standards in terms of transparent governance, responsibility, and care for its customers, investors, and the society as a whole.
